HEALTH CARE

Blue Shield Asks for Hospital Bids: In another sign of medical cost-cutting, Blue Shield of California has asked about 400 hospitals to reduce their prices or risk losing the insurer’s business. The move follows a similar, controversial request for bids earlier this year by Blue Cross of California. Blue Shield said its new “request for proposal” strategy is aimed at “reducing costs while assuring access to quality hospital care” for its 1.5 million members. Blue Shield said that hospitals that meet its cost and quality criteria will be eligible for contracts with the insurers; others face the prospect of being dropped from the Blue Shield network, and thus ineligible to see Blue Shield patients. David Langness, a spokesman for the Healthcare Assn. of Southern California, a trade group representing hospitals, said hospitals are “very concerned” that such efforts by insurers may lead to “price warfare” among insurers and hospitals and medical groups.